Athens-headquartered Poseidon Containers and New York-based Global Ship Lease, both of which own fleets of small to medium-sized container ships, are to merge.
George Youroukos, CEO of Poseidon, believes smaller ships have tremendous trading opportunities. He said: “The clear disconnect between supportive long-term supply/demand fundamentals and cyclically low asset prices represents a highly compelling opportunity to invest in mid-sized and smaller containerships. Our merger will make significant growth possible in a recovering market.”
“This attractive combination is the result of our strategic alternatives review process, enabling Global Ship Lease to double the size of our fleet, diversify and enlarge our portfolio of customers, improve our fleet age profile, reduce leverage, and significantly strengthen our ability to capitalise on compelling growth opportunities,” explained Ian Webber, CEO of the company. He will also be CEO of the new group.
“In addition, we benefit from the extensive operational and commercial capabilities that George Youroukos has separately established. This includes Technomar, an established and leading ship management company, with a proven track record of reliability and controlling vessel operating costs, and ConChart, an organisation which will materially enhance our commercial coverage.”
The combined group will control 38 vessels amassing 198,793 TEU with an asset value of approximately US$1.2B and revenues of over US$525M. Poseidon will control 69.5% of the equity in the new group.